Harootunian Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 80,000 Total fixed manufacturing overhead cost $ 312,000 Variable manufacturing overhead per machine-hour $ 2.10 Recently, Job T629 was completed with the following characteristics: Number of units in the job 50 Total machine-hours 200 The predetermined overhead rate is closest to:

The following multiple choices are missing:

$8.10 per machine-hour

$2.10 per machine-hour

$3.90 per machine-hour

$6.00 per machine-hour

The predetermined overhead rate is $6

Explanation:

The predetermined overhead rate is the sum of the fixed manufacturing overhead cost per machine hour and variable manufacturing overhead per machine hour

fixed manufacturing overhead cost per machine=total fixed manufacturing overhead/total machine hours

fixed manufacturing overhead=$312,000

total machine hours is 80,000 hours

fixed manufacturing overhead cost per machine=$312,000/80,000=$3.9

variable manufacturing overhead per machine hour is $2.10

Predetermined overhead rate =$3.9+$2.1=$6

The last option is the correct one

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.